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U.S. CONSUMER GROUP CALLS FOR TARIFF CUTS ON CENTRAL AMERICA IMPORTS

U.S. CONSUMER GROUP CALLS FOR TARIFF CUTS ON CENTRAL AMERICA IMPORTS

   A Washington-based consumer group has asked U.S. trade policy negotiators to consider eliminating or significantly reducing tariffs in the development of the Central America Free Trade Agreement.

   The Consumers for World Trade told U.S. trade policy negotiators that tariffs on shoes and clothing alone from Central America are in excess of 10 percent.

   “The CAFTA negotiation provides an important opportunity for U.S. negotiators to achieve not only increased access to foreign markets for U.S. exporters, but also a more open and competitive U.S. market for U.S. consumers,” said Robin Lanier, executive director of Consumers for World Trade, in testimony sent to the U.S. Trade Policy Staff Committee.

   The group cited a recent study by the Progressive Policy Institute, which found that imports of clothing and shoes represent 6.7 percent of all goods imported, but nearly $8.7 billion, or 47 percent, of U.S. collected tariffs.

   “These hidden taxes fall heaviest on those consumers who can least afford to pay them — working families with children — who must devote a larger portion of their annual income to the purchase of these products,” Lanier said.